Sea Harvest Joined the Ranks of Top-Listed Fishing Companies in South Africa
The listing of Sea Harvest as a leading fishing company in South Africa, provides excellent investment opportunities in the food sector.
Sea Harvest, under leadership of CEO Felix Ratheb, became one of two listed fishing companies on the Johannesburg Stock Exchange for 2017. This followed shortly after the listing of Premier Food and Fishing. At present, there has not been any other fishing companies listed on the JSE in South Africa in 2017.
Sea Harvest managed to raise R1,33 billion with its listing on the JSE, thus ensuring R3,14 billion in market capitalisation. A total of 42% of the company’s shares was floated at R12,50 per share. Sea Harvest is listed under the share code of SHG in the Farming, Fishing and Plantation sector. A total of eight companies are listed in the sector.
Felix Ratheb commented that the capital raised from becoming a listed fishing company in South Africa would be applied towards the payment of debt, and towards local and international growth of the company’s operations.
The Brimstone Investment Corporation Shareholding Improves Sea Harvest’s Transformation Status
Sea Harvest delisted in 2000, under the majority shareholder, Tiger Brands, but Brimstone took majority shareholding in Sea Harvest in 2009 and under its shareholding control, the company is now back on the JSE.
In 2016, Brimstone Investment Corporation invested R250 million in acquiring Kagiso Tiso Holding’s shareholding in Sea Harvest. The company has invested R766 million in Sea Harvest since 2009, and has the majority shareholding in Sea Harvest at present. Brimstone’s shareholding gives Sea Harvest a superb B-BBEE profile, which is in line with the South African government’s transformation goals.
Shareholding in Mareterram
Sea Harvest also recently initiated a capital expenditure drive towards infrastructure and vessel improvement aimed at the development of its operational efficiency. The company increased its international presence in 2016 with an increase in its shareholding in Mareterram, which is an Australian Stock Exchange listed company in the agriculture sector. Sea Harvest now has a 56% shareholding in Mareterram.
Felix Ratheb has noted their excitement regarding the company’s shareholding, saying that it gives Sea Harvest the ability to increase foreign currency earnings, and also gives the company a good platform to expand operations in Australia.
A Milestone in the Company’s History
The company’s listing is the reaching of a milestone after over 50 year of history. Sea Harvest started its operations in Saldanha in the Western Cape as far back as 1964, and has since then grown to become a leading fishing company in South Africa. Sea Harvest has initiated and spearheaded the development of an international market for Cape Hake, which is one of the most popular white fish species on the food market today.
Sea Harvest is also well-known for its focus on sustainable fishing practices. The company is a co-founding member of the Responsible Fisheries Alliance, and works with non-governmental organisations and other fishing companies in developing and implementing programmes for the protection and enhancement of the marine ecosystem’s sustainability.
The company follows an approach of reducing carbon emissions in the sea, with research and investment into modern vessel technologies to limit emissions. Sea Harvest also follows carbon emission control approaches for operations on land, and submits annual carbon footprint reports.
Sea Harvest is furthermore a council member of the Groundfish Forum, which is a non-profit organisation aimed at the exchanging of information, and the studying of patterns and trends related to the numbers, supply and demand of groundfish species. Ongoing initiatives to ensure sustainability in groundfish catching have been successful, and according to Felix Ratheb, the catches have been stable over the past few years.
The company has developed an international reputation for excellence in Cape Hake fishery. Consumers worldwide, according to Felix Ratheb, know that when they purchase Cape Hake, they will get quality.
Sea Harvest is a major employer in the fishing industry, with the creation of over 3 000 jobs in the rural regions of South Africa through responsible and sustainable fishing operations. The company has also been praised for its focus on meeting transformation objectives and its community focus.
Sea Harvest’s contribution to job creation and quality fish supply can be expected to continue, and investors can expect the company to expand its international presence and ensure superb returns on foreign currency earnings.